What's ModCloth's Business Model?

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July 19 (Bloomberg) -- ModCloth CEO and Founder Eric Koger discusss the company's online apparel store with Jon Erlichman on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

A lot of people know your business.

For those people who are less familiar with how it operates, what is the business model?

What's modcloth -- modcloth it is an online retailer only.

It involves our large community of women from around the world and basically all aspects of the business.

We sell vintage inspired fashion from small designers and our own proprietary development.

We enable the community to submit design ideas and vote on products before we take them into production.

They have a huge influence.

We also involve our community and the site experience by letting them upload photos of themselves in the shop outfits of other real women wearing modcloth.

Everybody likes -- i was going to say everybody likes to use social media.

Giving the consumer more free voice and what you make it a big deal.

How does it translate into big bucks?

We did over $100 million in revenue and we are growing every year.

A big part of it is a show -- social experience that modcloth is engaging in on facebook and all of the external social networks that customers spend their time.

And how i described a few moments ago.

We take on this wonderful input we get from our customer on what she loves and translate that back into the supply chain during analytics and predictive models that help us make decisions on what products to produce.

The customers have this really direct influence over what merchandise gets made.

Using the data make better decisions.

It is also pretty cool, you clap source clothing -- clout source clothing directions.

I have not heard about that.

Tell me more.

In the community can submit design ideas.

We let the community vote on the top designs through our program.

The top designs we take into production.

We also take designs from the various designers we work with corporate production and put them up and from the community to vote.

We use their vote to help determine what we should produce.

And how much we should produce based on the level of interest.

With that -- we have had over one million comments.

Those comments help us decide what to produce and how to evolve those designs.

Changing colors or details.

We have had over 20 million votes across of the products we are launching their program.

It really helps us steer our decisions.

Speaking of evolution, what about the business it self when it comes to growth from here has worked what about partnerships with traditional retailers or the giants of e-commerce?

What you think about that?

We are really focused on developing the best possible e- commerce experience across all devices.

Mobile is a big focus for us now.

Everything we do, we are think about in a mobile first away.

What that experience is on our phones and tablets before we start focusing on the desktop experience.

We see that as a huge opportunity for growth for that to be more present in her life since she tends to have a phone more with her.

We are also focused on growing through better serving the full spectrum of sizes.

We have been bringing more of our products and the full-size special from extra small to 4x. the designers we have worked with have not been producing in 1x-4x. we are working with them to understand the fitting needs of our consumers.

This is a husband and wife this list which you started -- this is what you started with your wife.

Any suggestions for spouses that are looking to go to business together?

Susan i started modcloth when were 18 and 17 respectively.

It is almost always ever known.

And works well with us since jeff clement three skill sets.

Knowing that clear division at west final say on what is critical.

It is the key to success for any partnership especially when you are working with your wife.

Some good advice.

This text has been automatically generated. It may not be 100% accurate.


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